Banks Plan Fund to Revive Market

Some of our largest banks have announced plans to form a $75 billion dollar fund to support the ailing market for sub-prime debt. The unusual move, which includes Bank of America and JP Morgan, aims to boost confidence in and prevent a further sell-off of such investments. Such a sell-off would force banks, brokerages and hedge funds to write down the value of their assets. This could, in turn, further tighten credit markets and hurt the economy.